FINANCIAL & MANAGERIAL ACCOUNTING (ACCES
9th Edition
ISBN: 9781265484040
Author: Wild
Publisher: MCG
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Question
Chapter 2, Problem 1.4AA
a.
To determine
Liabilities:
Liabilities are the obligations that an entity owes to outsiders. It can be both short-term as well as long-term. Short-term liabilities are the ones that need to be settled within a year or an operating cycle, whichever is shorter. Similarly, long-term liabilities are to be settled beyond one year or the operating cycle. Liabilities, both current and non-current, are shown on the face of the
Requirement 1
To report:
The total amount of liabilities for A for fiscal years ended September 28, 2019, and 2018.
b.
To determine
Assets:
Assets are the resources that an entity owns. It can be both short-term as well as long-term. Short-term assets are the ones that bring benefits to the business within a year or an operating cycle, whichever is shorter. Similarly, long-term assets are the ones from which the benefits are expected to flow into the business over several years. Assets, both current and non-current, are shown on the face of the balance sheet under the main heading Assets and are further divided into sub-headings of current and non-current assets.
Requirement 2
To report:
The total amount of assets of A for fiscal years ended September 28, 2019, and 2018.
c.
To determine
Debt ratio:
Debt ratios are expressed to determine the company’s ability to pay off its entire liabilities through the resources that it owns. It means that this ratio will determine the future solvency of the company.
Requirement 3
To compute:
The debt ratio of A for the fiscal years ended September 28, 2019, and September 29, 2018.
d.
To determine
Financial leverage:
Financial leverage refers to the company’s obligations on the company’s assets. The more the financial leverage of an entity, the greater will be the risk for the company for future sustainability. As more financial leverage attracts more fixed costs, it is always advisable for every company to check for its financial leverage to be under the controllable level.
Requirement 4
Which of the fiscal year, the company employed more financial leverage?
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Rara Sdn. Bhd
Balance Sheets
31st December (in millions)
2020
2019
Assets
Current assets
Cash
RM460
RM444
Acount receivable (net)
1,188
1,190
Inventories
1,132
247
1,056
225
Other current assets
3,027
3,281
Total current assets
2,915
3,128
Property (net)
Other assets
5.593
5,804
Total assets
RM11.901
RM11,847
Liabilities and Stockholders' Equity
Current liabilities
RM3,313
6,826
RM3,184
6,509
Long-term liabilities
Stockholders' equity - common
1.762
RM11,901
2.154
RM11,847
Total liabilities and stockholders' equity
Rara Sdn. Bhd
Income Statements
For the year ended 31st December (in millions)
2020
RM13,198
2019
Net sales
RM12,397
Cost of goods sold
Gross profit
Selling and administrative expenses
Income from operations
7.750
5,448
7,108
5,289
3.472
3.299
1,990
1,976
Interest expense
233
248
Other (income) expense, net
11
1,732
Income before income taxes
1,742
Income tax expense
503
502
Net income
RM1,229
RM1.240
Chapter 2 Solutions
FINANCIAL & MANAGERIAL ACCOUNTING (ACCES
Ch. 2 - Prob. 1QSCh. 2 - Prob. 2QSCh. 2 - Reading a chart of accounts C3 A chart of accounts...Ch. 2 - Prob. 4QSCh. 2 - Prob. 5QSCh. 2 - Prob. 6QSCh. 2 - Prob. 7QSCh. 2 - Prob. 8QSCh. 2 - Prob. 9QSCh. 2 - Prob. 10QS
Ch. 2 - Prob. 11QSCh. 2 - Prob. 12QSCh. 2 - Prob. 13QSCh. 2 - Prob. 14QSCh. 2 - Prob. 15QSCh. 2 - Prob. 16QSCh. 2 - Prob. 17QSCh. 2 - Prob. 18QSCh. 2 - Prob. 19QSCh. 2 - Exercise 2-1 Steps in analyzing and recording...Ch. 2 - Prob. 2ECh. 2 - Prob. 3ECh. 2 - Prob. 4ECh. 2 - Prob. 5ECh. 2 - Prob. 6ECh. 2 - Prob. 7ECh. 2 - Prob. 8ECh. 2 - Prob. 9ECh. 2 - Prob. 10ECh. 2 - Prob. 11ECh. 2 - Prob. 12ECh. 2 - Prob. 13ECh. 2 - Prob. 14ECh. 2 - Prob. 15ECh. 2 - Prob. 16ECh. 2 - Prob. 17ECh. 2 - Prob. 18ECh. 2 - Prob. 19ECh. 2 - Prob. 20ECh. 2 - Prob. 21ECh. 2 - Exercise 2-20 Identifying effects of posting...Ch. 2 - Prob. 23ECh. 2 - Prob. 24ECh. 2 - Prob. 25ECh. 2 - Prob. 26ECh. 2 - Prob. 27ECh. 2 - Prob. 28ECh. 2 - Prob. 29ECh. 2 - Prob. 1PSACh. 2 - Problem 2-2A Preparing and posting journal...Ch. 2 - Prob. 3PSACh. 2 - Prob. 4PSACh. 2 - Prob. 5PSACh. 2 - Prob. 6PSACh. 2 - Prob. 7PSACh. 2 - Prob. 1PSBCh. 2 - Prob. 2PSBCh. 2 - Prob. 3PSBCh. 2 - Prob. 4PSBCh. 2 - Prob. 5PSBCh. 2 - Prob. 6PSBCh. 2 - Prob. 7PSBCh. 2 - Prob. 2SPCh. 2 - Prob. 1GLPCh. 2 - Prob. 2GLPCh. 2 - Prob. 3GLPCh. 2 - Prob. 4GLPCh. 2 - Prob. 5GLPCh. 2 - Prob. 6GLPCh. 2 - Prob. 7GLPCh. 2 - Prob. 1.1AACh. 2 - Prob. 1.2AACh. 2 - Prob. 1.3AACh. 2 - Prob. 1.4AACh. 2 - Prob. 2.1AACh. 2 - Prob. 2.2AACh. 2 - Prob. 2.3AACh. 2 - Prob. 3.1AACh. 2 - Prob. 3.2AACh. 2 - Prob. 3.3AACh. 2 - Provide the names of two (a) asset accounts, (b)...Ch. 2 - Prob. 2DQCh. 2 - Prob. 3DQCh. 2 - Prob. 4DQCh. 2 - Prob. 5DQCh. 2 - Prob. 6DQCh. 2 - Prob. 7DQCh. 2 - Prob. 8DQCh. 2 - Prob. 9DQCh. 2 - Prob. 10DQCh. 2 - Prob. 11DQCh. 2 - Prob. 12DQCh. 2 - Prob. 13DQCh. 2 - Prob. 14DQCh. 2 - Prob. 15DQCh. 2 - Prob. 1BTNCh. 2 - Prob. 2BTNCh. 2 - Prob. 3BTNCh. 2 - Prob. 4BTNCh. 2 - Prob. 5BTNCh. 2 - Prob. 6BTN
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